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(LO 5) A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's
(LO 5) A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $393,000 debit 680 credit 980,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.5% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice $1,468 $2.148 O $3.930 $4.900 O $5.290
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